Arb short 15 min time frame...back to bottom of measured moveBearish divy 3 layers of confluence, plus they just ran it from the abyss... easy short
Howtotrade
Common trading mistakes to avoid as a trader ❌
For new market traders, review these common trading mistakes so you can avoid emotional blunders with your investments and take advantage of psychological edges.
The mechanics of trading are relatively simple. A click or two gets you into a trade, and a click or two gets you out. But the decision-making process behind those clicks is much more complex. And with complexity comes more opportunities to make mistakes that can affect your bottom line. Here are seven common mistakes that traders—both new and experienced—sometimes make.
1️⃣Mistake 1: Emotional trading/psychological trading
Trading can bring out the best and the worst in us. For a trader, nothing is more frustrating than opening a long position and seeing the market drop, bringing the value of your long position to levels well below the price you bought it. The same can be said about missing out on a move in a stock that's been on your radar for a while.
Anger, fear, and anxiety can lead traders to make quick and even irrational emotion-based decisions.
The reality is that markets are cyclical, moving through ups and downs. Trading decisions based on emotions may not always give the results you want. Instead, take a step back and think through the situation logically. Every situation is different, and instead of buying or selling in a panic, think about how you can best manage risk.
2️⃣Mistake 2: Pulling stop orders
When a position hits a stop order, it can often mean you're going to take a loss on it. Pulling—or canceling—a stop is often a subliminal attempt to avoid admitting you were wrong. After all, as long as the position is open, there's still a chance it could come back and be profitable.
The problem is every 50% loss starts with a 5% loss. It's not magic; it's just math. And it only takes one small loss that turns into a big one to make a big dent in a portfolio. Losing is no fun, but it's part of trading. Being disciplined about managing stop orders may help you come back and trade another day.
3️⃣Mistake 3: Trading without a plan
Trading plans should act as a blueprint during your time on the markets. They should contain a strategy, time commitments and the amount of capital that you are willing to invest.
After a bad day on the markets, traders could be tempted to scrap their plan. This is a mistake, because a trading plan should be the foundation for any new position. A bad trading day doesn’t mean that a plan is flawed, it simply means that the markets weren’t moving in the anticipated direction during that particular time period.
Every trader makes mistakes, and the examples covered in this article don’t need to be the end of your trading. However, they should be taken as opportunities to learn what works and what doesn’t work for you. The main points to remember are that you should make a trading plan based on your own analysis, and stick to it to prevent emotions from clouding your decision-making.
Hey traders, let me know what subject do you want to dive in in the next post?
The Simple Plunge StrategyHello dear @TradingView community!
Welcome to @Vestinda, your trusted trading companion in the ever-changing world of financial markets. Our team is passionate about giving traders like you the tools and knowledge to make smart decisions and achieve your investing and trading goals.
At Vestinda, we know that successful trading involves using effective strategies, analyzing the market, and managing risk. That's why we sharing a strategy that can help you make the most of downward trends — The Simple Plunge Strategy.
This strategy is designed to help you navigate downward movements in the market with confidence. It focuses on spotting specific patterns that occur during sharp drops in cryptocurrency prices. By understanding and applying this strategy carefully, you have the potential to increase your profits.
The Simple Plunge Strategy involves looking for certain signs: a strong and sudden downward movement in price, shown by a big candlestick with high trading volume. After the drop, the price often recovers to levels seen when the candlestick opened. By closely watching how the price moves across certain boundaries, you can find good points to enter trades and set your profit targets and stop-loss levels.
To use the Simple Plunge Strategy effectively, it's important to find the right entry points and manage your risk. You can find entry points by watching the price as it rises above the starting point of the candlestick with a big volume. To determine your profit target, you can use half of the candlestick range. And to manage risk, you can set a stop-loss order above the previous high point.
This strategy can be used with different timeframes, but looking at 15-30 minute intervals can give you opportunities for quick trades. When applying the strategy to cryptocurrencies, look for coins or tokens that have experienced significant drops with high trading volume. Watch how the price moves above and across the starting point of the drop to find potential entry points.
You can also find examples of Simple Plunge patterns on CEX platforms, which list various cryptocurrencies. Take a look at coins such as ETH, DOGE, and others to see instances where the price sharply drops and then rises again, indicating possible entry points.
Remember, the Simple Plunge Strategy can also be used in reverse to identify opportunities during upward movements. A similar pattern often occurs when prices rise.
We'd love to hear your feedback on the Simple Plunge Strategy.
Have you tried this approach in your trading?
Share your thoughts, questions, and experiences in the comments below.
Let's have a lively discussion and support each other in the world of trading.
Learn What Will Really Make You Profitable in Trading
What brings the consistent profits in trading?
Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject.
In this educational article, we will discuss what really will make you profitable in trading.
🔔The first thing that 99% of struggling traders are looking for is signals.
Why damn learn if you can simply follow the trades of a pro trader and make money?!
The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal)
Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position.
Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result.
🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits.
You simply start the program and wait for the money.
The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot.
Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account.
Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading.
📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade.
The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading.
🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor.
And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail.
But what will make you profitable then?
What is the secret ingredient.
Remember, that secret ingredient does not exist.
In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset.
🧠What is correct mindset in trading?
It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading.
📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position.
Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months.
✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown.
💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management.
Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done.
❤️Please, support my work with like, thank you!❤️
Day Trading Tips in 2023 📈
Day trading refers to a style of trading where the trader buys and sells a financial instrument within the same day, or even multiple times a day. With the right strategy and knowledge, you can take advantage of small price movements in the currency exchange market to earn a potential profit. However, it takes a lot of practice and dedication to become successful at day trading forex, so it's important for beginners to understand what they're getting into before starting out.
In this article, we'll discuss five insider tips to help beginners start their journey in day trading forex.
1. Set Aside Funds You Can Afford to Lose 💵
Before you start trading, it is important to understand how much capital you can realistically afford to risk. Almost all successful traders say that you should never trade more than you can afford to lose. So, it is advisable for beginners to start small and gradually increase their trading capital as they gain experience.
Typically, successful day traders commit no more than 1-2% of their account's balance per trade. Additionally, it is wise to earmark a surplus amount of funds that can be used solely for trading purposes, and ensure that you are prepared for any potential losses.
This way, even if your trades go in the wrong direction or don't turn out as well as you expected, you won't be risking your personal savings or other investments.
2. Be Realistic With Your Strategies 💫
Day traders should be realistic when formulating their strategies, as having too high expectations can only lead to disappointment. Namely, strategies do not need to succeed every time in order to be potentially profitable, and day traders often make potential profits on approximately 50-60% of their trades.
Furthermore, it is important to ensure the financial risk on each trade is limited to a specific percentage of the account and that entry and exit methods are clearly defined. By being realistic with their strategies, day traders can better manage risk while improving their chances of achieving long-term success.
3.Follow the Strategy 🎯
Once you have established a concise strategy that works for you, it is important to stick to it. Successful traders do not need to think on their feet or make decisions quickly, as they already have a specific trading strategy in place.
It is essential to follow the strategy closely rather than try to chase potential profits or abandon the strategy when things don't go as expected. Doing so can significantly increase the chances of you being successful in the long run.
4.Stop-Loss Orders 🛑
Risk can be mitigated through stop-loss orders, which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses.
5.Journal Your Trades 📝
A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action.
The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice.
What do you want to learn in the next post?
Why Failure Is Key Of Success
Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach.
There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately.
Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success.
Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward.
Dear followers, let me know, what topic interests you for new educational posts?
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference.
👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market.
Four Risk Management Concepts Every Crypto Trader Should Understand
To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance.
Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market.
One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term.
It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process.
While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition.
Before diving into trading, it's crucial to understand four key concepts in trade and risk management:
Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses.
Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management.
Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses.
Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions.
For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account.
Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses.
Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change.
For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75.
By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market.
Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms.
For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders.
With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades.
This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value.
Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains.
Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account.
Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open.
If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested.
It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses.
As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully.
Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool.
Here are some recommendations that can help you navigate the exciting but risky world of crypto trading:
First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk.
You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses.
Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses.
Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities.
Calling all traders! Are you ready to take your skills to the next level?
Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up.
Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
MU ascending triangleOn the chart we can see an ascending triangle which is a bullish pattern. Therefore we can expecting the break out to the up side.
How to trade:
trade a break out with the volume increase in order to avoid trading false break out.
Target is shown on the chart.
Why 90% Of Traders Lose Money?
Trading is a tough business and most people who start in the business lose money.
And these numbers aren't small at all, really. In fact, they might even be scary to look at. Therefore, in this article, we will look at some of the most popular reasons why more than 90% of new traders will lose their money in trading.
____
The most common reason why many traders lose money is simply that they want to become professional traders without learning more about it first. They trade without even learning the differences between assets and how trading works. Other people start trading after seeing the hyped stories of millionaire traders on television.
____
Some traders just follow the recommendations of others and do not conduct technical analyses of their own.
Traders should review the prices, analyze the volume, check the prior trends and analyze other technical indicators before placing their intraday orders.
Rushing just to place buy or sell orders is one of the biggest mistakes intraday traders make.
One should conduct proper technical analysis and then start trading.
____
The phrase- “Trend is your best friend” always works in the market. Not following the trend is another biggest mistake that day traders make.
Unless a trader has many years of experience and understanding of the market, traders should try to avoid going against the trend.
If the market is in a strong uptrend, then one should try to trade in the up direction only unless there is any strong resistance or chart pattern breakout.
____
Some traders follow rumors and recommendations which are spread by the media houses and brokers.
This is another big mistake that intraday traders make. One should not blindly follow the intraday trading tips and rumors without their own analysis.
Going by these recommendations without conducting your own analysis can cause huge losses.
As we have discussed above traders should conduct proper research before following any recommendations or intraday tips. As we all know that the intraday trading is a mixed bag of losses and gains. Not every trade goes right or is profitable. Thus traders should put a stop loss of their trades when doing intraday trading to protect their capital from losses.
Please, like this post and subscribe to our tradingview page!👍
TRADING OR A JOB? DEEP DIVE❗️
Are you torn between choosing a job and getting into trading? Both have their advantages and pitfalls, but by combining the two, you can reap the rewards of both worlds.
🚷Firstly, let's consider a traditional job. A job offers security, stability, and a predictable income. You work for a set number of hours, and you receive a paycheck. You have employer benefits such as healthcare, 401k matching, and paid time off.
On the downside, you are limited to your salary, which may not always reflect your hard work and dedication. You may feel stuck in your role as there are usually limited opportunities for career advancement. And if you lose your job, you lose that source of income.
💹Now let's consider trading. Trading offers the potential for uncapped income, flexibility, and the autonomy to make your decisions. You can trade anywhere with an internet connection, and there are many different markets to choose from, such as forex, stocks, and commodities. You have complete control over your financial destiny.
However, trading is not for everyone. It requires a lot of time, effort, and discipline to become successful. There are risks involved, and you can lose money if you do not know what you are doing. It can also be a lonely profession as you may be working alone most of the time.
💡Now, what if we combine the two? This is where the concept of "side hustles" comes into play. You can keep your job for the stability and security, but you can also trade on the side to increase your income and diversify your portfolio.
By trading on the side, you can use the abundance of time outside of your job to learn, practice, and implement trading strategies. Gradually, you may earn enough money from trading to eventually quit your job and become a full-time trader.
However, the combination of the two must be approached with caution. Trading can be time-consuming, and you do not want to sacrifice the quality of your work at your job. It is also essential to practice risk management and not invest money that you cannot afford to lose.
⚖️In conclusion, both a job and trading have their advantages and disadvantages. Combining the two is an excellent way to increase your income, diversify your portfolio, and potentially become a full-time trader. But proceeding with caution, discipline, and good money management is key to success. Remember, the goal is to build a better future for yourself, and with the right balance between a job and trading, you can achieve it.
Thanks for reading bro, you are the best☺️
Like, comment and subscribe to boost your trading!
Dear followers, let me know, what topic interests you for new educational posts?
Common Fears in Trading and How to Overcome Them
As we discussed many types, psychology plans a crucial role in trading. Even the best strategy in the world, can be screwed by emotional decisions.
In this educational articles, we will discuss 5 common fears in trading and the ways to overcome them.
1️⃣Fear of the Unknown.
Lack of experience make many traders face "unusual" situations on the market: the setups, patterns, fluctuations and formation that they have never seen before. Such events cause inaction and paralyze. Not knowing how to deal with such situations, newbies make irrational decisions that most of the time incur losses.
✔️Solution:
The best way to beat the fear of the unknown is to keep learning:
reading the books, watching the charts, studying the historical data will help you to be prepared for various situations.
Also, your mindset plays an important role here: your adaptability, your willingness to accept the changing nature of the market are essential for your success in trading.
2️⃣Fear of Being Wrong.
Testing multiple strategies and trading techniques, the only way for the newbie traders to prove their efficiency is to try them, try them on real market. And of course, the majority of the stuff that you will try won't work. In trading, each mistake costs money, hence, losses will be inevitable.
The fear to make a mistake will be chasing you.
✔️Solution:
The best way to overcome the fear of being wrong is to build a confidence in your actions. After trying multiple strategies, you will certainly find the one that works. More you will trade with that, more winning trades you will catch, more confident you will become in your system.
3️⃣FOMO - Fear of Missing Out
There are thousands of instruments to trade. Many markets are opened 24 hours a day. Of course, you can not monitor them all, and even if you have a fixed watch list of the instruments that you trade, you can not monitor them 24/7.
Some opportunities will always be missed. Some trading setups will form while you are sleeping, and accurate patterns will form on the instruments that are not in your watch list.
Realizing the fact, that something will always be missed, is painful.
For that reason, newbie traders are trying to be present everywhere at anytime. But the paradox is that more options breed more confusion.
✔️Solution:
Always remember the fact that patience always pays.
Opportunities will always come, but in order to catch them, you need focus. And fewer instruments you have in your watch list, more attention you pay to them.
4️⃣Fear of Losing Money
The biggest risk in trading is the fact that your entire trading account can be blown in a glimpse of an eye.
Moreover, trading can be learned only by trading. And losses are inevitable, no matter how good you are.
That makes newbie traders be scared of opening just one single position.
✔️Solution:
I always give my students the recommendation to trade with the amount that they can afford themselves to lose.
Consider your trading account as an investment. With each single trade, you are investing in your skills, in your knowledge. You pay the market to teach you.
5️⃣Fear of Not Taking Profit at the Right Time
Imagine you opened a trade and the market suddenly starts moving in the direction that you expected. It is coming closer and closer to your target... A few seconds after, however, the market rolls over. You see how your profits start evaporation. Probably you chose incorrect take profit level? Maybe it is the moment to close the trade manually?
You are scared that all the profits will be gone.
✔️Solution:
Take profit level selection is a very hard element of each trading strategy. The only way to not let your emotions intervene is to build the solid system that proved its efficiency and learn to be disciplined to follow that no matter what.
Always remember that no one can teach you how to deal with yourself. How to deal with your emotions.
You should go through all these fears by your own and find the way to beat these dragons.
The solutions that I shared helped me to beat my dragons, I hope that they will help you to beat yours!
❤️Please, support my work with like, thank you!❤️
COST Symmetrical triangle On the chart we can see symmetrical triangle formation which is neutral pattern.
In order to trade it you have to wait for the breakout with the volume increase.
Target both for short and long are shown on the chart.
What is Trading Plan? Detailed Example
A short ⚠️disclaimer before we start:
the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc.
Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points.
In order to increase the accuracy of your predictions analyzing different financial markets, you must learn to identify the direction of the market.📈
The identification of the market trend must be based on strict & reliable & testable rules.
It can be based on technical indicators or price action
Personally, I prefer to rely on price action.
There are three main types of market trends:
Bullish Trend
Bearish Trend
Sideways Market
Depending on the current direction of the market, on the chart, I drew a flow chart✔️ that will help you to act safely.
➡️Sideways market signifies consolidation & indecision. Usually being in such a state the market tends to coil in horizontal ranges.
To trade such a market safely, the best option for you will be to wait for a breakout of the range & wait for the initiation of the trend.
➡️Once you spotted a bullish market, do not rush to buy.
Your task will be to identify the closest strong structure support .
You must be patient enough to let the price reach that support first (and by the way, there is no guarantee that it will happen) and then you must wait for a certain confirmation.
Only once you get the needed confirmation you can buy the market.
➡️The same strategy will be applicable to a bearish market.
Spotting a short rally it is way early to just sell the asset from a random point.
You must find the closest strong structure resistance and wait for the moment when the price will approach that.
Then your task will be to wait for a confirmation and only when you got the reliable trigger you short the market.
🦉Try to rely on this flow chart and I promise you that you will see a dramatic increase in your trading performance.
And even though it may appear to you that this flow chart is TOO SIMPLE, in practice, even such a set of rules requires iron discipline and patience.
Thank you so much for reading this article,
I hope you enjoy it!
Let me know, traders, what do you want to learn in the next educational post?
Steps to Becoming a Profitable Trader
This is a roadmap to becoming a profitable trader. Follow these steps to avoid wasting time and bouncing around from idea to idea. We start with a basic strategy idea we like, then build off it. We MAKE it profitable by following the steps outlined.
1. Focus on One Idea or Strategy
Focus on one specific idea.
An idea is not “price action” or “technical analysis”. That is too broad.
But you could start with the idea of day trading an 8 and 21-period moving average crossover.
Or MACD signal crossovers on a 1-minute chart.
Or the rounded top or bottom or pattern, or triangles, or Keltner channel bounces off the center line in strong trends.
Basically, you need an idea and a time frame (1-minute chart, daily chart, etc).
2. Define the Strategy
Since you have your idea, you already know the basic concept of the strategy. If you don’t have a strategy yet, that’s where a bit of research comes in: finding something you like the idea of. There are loads of free strategy articles on this site, in the courses offered, and from other sources such as books, Youtube, etc.
Whatever strategy you decide on, it needs to include these key components:
A trade setup. The trade setup is what needs to happen for us to even consider a trade. It could be a specific chart pattern, moving average crossover, price action signal, etc.
Where, when, and why we enter
A trade trigger is a precise event that tells us to get into the trade. When the “trigger” event occurs, it turns a possible trade setup into an actual trade.
Where, when, and why we exit profitable trades
Where, when, and why we exit losing trades
If and how we trail a stop loss.
3. Polish Your Strategy
Keep practicing. Keep improving your strategy.
Try that on different markets, under different circumstances.
Make it better and better till it starts making money.
Keep it simple and focused on one trading idea.
Get better and better at that idea. Keep refining and building your confidence in the method.
We gain confidence by seeing something work and being able to implement it. And that’s what all these steps are about.
Please, like this post and subscribe to our tradingview page!👍
♦️BAD MINDSET IS YOUR ENEMY♦️
♦️Forex trading is one of the most exciting and lucrative ventures that anyone can undertake. With the right mindset and tools, one can make a lot of money by trading currencies. However, the opposite is also true. A bad mindset can lead to disastrous consequences in forex trading. It is, therefore, important for traders to understand the effects of a bad mindset and avoid them at all costs.
♦️One of the most common effects of a bad mindset in forex trading is overthinking. When traders overthink, they become too analytical and too cautious. This can lead to missed opportunities and bad trading decisions. Overthinking can also lead to indecision and second-guessing, which can be harmful in a fast-paced and dynamic market like forex.
♦️Another effect of a bad mindset is emotional trading. Emotions like fear, greed, and impatience can lead to irrational trading decisions. For example, a trader may hold onto a losing position for too long in the hope that it will eventually turn profitable. This can lead to bigger losses and a further deterioration of the trader’s mindset. Similarly, greed can lead to taking on too much risk, which can also lead to disastrous consequences.
♦️A bad mindset can also cause traders to be too dependent on their trading strategies. While having a good trading strategy is important, it is equally important to be flexible and open-minded. A trader who is too reliant on their strategy may miss out on profitable opportunities that do not fit their style. This can lead to missed profits and frustration.
♦️Lastly, a bad mindset can lead to overconfidence. Traders who are overconfident may take on too much risk or ignore important market signals. This can lead to catastrophic losses and a severe blow to the trader’s ego. Overconfidence can also lead to ignoring basic risk management principles, which is a recipe for disaster.
♦️In conclusion, a bad mindset can have a significant impact on forex trading success. Traders who are too analytical, too emotional, too dependent, or too overconfident may make bad trading decisions that can result in losses. It is, therefore, important for traders to stay calm, flexible, and open-minded in their approach to forex trading. A winning mindset can help traders achieve success and make profitable trades in the dynamic and exciting forex market.
Thanks for reading bro, you are the best☺️
Like, comment and subscribe to boost your trading!
Dear followers, let me know, what topic interests you for new educational posts?
Investment Risk Scale
When investing funds in any format, you need to understand the
investment approach and risk involved in the planning you undertake.
Example investment risk categories when investing capital or income are as follows:
1-2
Lowest Risk
Very Cautious Risk
You are not prepared to accept any exposure to investment loss although you
are aware that any investment has some possibility of loss, for example if a bank
holding your money was to collapse. The value of your money may also fall in
real terms if inflation exceeds the return that your investment achieves. You
accept that the returns from your investments are likely to be low compared to
the potential returns from investments that have a higher risk rating.
3-4
Cautious Risk
You are prepared to accept a higher risk of capital loss in return for the
opportunity to earn more than from deposits and low risk type investments but
do not wish to take as much risk as with a medium risk strategy. While there can
be no guarantee, investments in this category are not likely to fluctuate in value
as sharply or as quickly as a portfolio largely made up of equity investments.
5-6
Balanced Risk
You are prepared to accept that the value of your investments will fluctuate
with the aim of achieving higher returns in the medium to long term. You accept
that there is an increased risk of capital loss over investing in more low risk
investments. Medium risk investments can fluctuate in value more rapidly and
quickly over a short periods of time than more low risk investments.
7-8
Adventurous Risk
You are prepared to accept fairly high levels of risk with your investments,
with the aim of achieving higher investment returns in the longer term. You
accept that this may mean that the value of your investments may fluctuate
considerably over a short periods of time and that there is an increased risk of
capital loss compared with a lower risk investment strategy.
Therefore, you may consider investments mainly in equities/shares and is likely
to involve investment in various overseas markets as well as UK markets. This
increases risk because of currency fluctuations as well as investment risk. Risk
can be reduced by diversifying your investments across sectors and markets
9-10
Highest Risk
Very Adventurous
Risk
You are prepared to accept high levels of risk with your investments, with the
aim of achieving higher investment returns in the longer term. You accept that
this may mean that the value of your investments may fluctuate significantly
over a very short periods of time and you could lose a significant proportion
(possibly all) of your investment.
Please, like this post and subscribe to our tradingview page!👍
❗️CONFIRMATION BIAS IS YOUR ENEMY❗️
🏛As traders, we are constantly bombarded with information on the global economic landscape, market trends, and potential investments. With so much information at our fingertips, it is easy to fall victim to a cognitive bias known as confirmation bias.
🏛Confirmation bias, also known as selective perception, is the tendency for individuals to seek out and interpret information in a way that confirms their existing beliefs or hypotheses. In the world of trading, confirmation bias can be particularly dangerous, as it can lead traders to make decisions based on incomplete or biased information.
🏛For example, imagine you hold a strong belief that apple stocks are going to rise in the coming months. You begin to search for information to support this belief - perhaps you read articles, listen to news broadcasts, and consult financial websites that all confirm your hypothesis. Meanwhile, you are dismissing any information that contradicts your belief, such as negative earnings reports, changes in the market, or negative press.
🏛The problem with this type of thinking is that it can lead traders to ignore crucial signs that could indicate a shift in the market. Confirmation bias can cloud our judgment and hinder our ability to make objective, data-driven decisions.
🏛To avoid confirmation bias, traders need to actively seek out and consider evidence that contradicts their established beliefs. By doing so, traders can obtain a more comprehensive view of the market and make informed decisions based on all available information.
🏛Furthermore, it is essential to rely on multiple sources of information, including information from trusted analysts, financial experts, and data-driven research. Traders must be able to evaluate information objectively and dispose of preconceived notions that may color their decision-making process.
🏛In conclusion, confirmation bias is a cognitive bias that can significantly impair traders' abilities to make sound decisions in the market. Traders must be cognizant of this bias and actively work to identify and address it by seeking out multiple sources of information, analyzing data objectively, and challenging their preconceived beliefs. Only by doing so can traders ensure that their decisions are based on informed and rational conclusions, rather than biased opinions or incomplete information.
Thanks for reading bro, you are the best☺️
Like, comment and subscribe to boost your trading!
Dear followers, let me know, what topic interests you for new educational posts?
One Trade Does Not Define Your Trading Performance...
Hey traders,
👨🏻💻I am trading forex for more than 8 years.
During the last 5 years, I am actively posting my analysis & trades on TradingView.
Growing my audience, it was very peculiar for me to contemplate the reaction of my followers to my trading performance.
(by the way, we must say thanks to tradingview where the posting system does not allow to delete the posted trades so that each and every author is easily backtestable).
👩👩👧👧👨👨👧👧Those who follow me at least a half a year know that occasionally I have winning streaks when 9 out of 10 of my forecasts play out nicely. Sometimes, however, I face the drawdowns and catch a sequence of losing trades.
And sometimes the performance is mixed with the probabilities being on my side slightly.
🥇While the reaction to winning streaks is quite predictable:
I am praised by the members and get nice tips.
The reaction to losing streaks is worth discussing in detail.
It turned out that quite a huge portion of a trading community has a completely wrong understanding of a trading nature.
🤬The single loss is considered by them to be a failure, a mistake.
Facing the sequence of losses, they quickly become negatively biased to the person that they have just recently praised.
With the continuation of a drawdown, they blame the analyst and launch a barrage of criticism towards him.
🔍Then they are in a search again. They are looking for a trader that will be constantly right. Catching the new one during a winning streak, the cycle repeats.
At some moment such people become disappointed in trading and drop this business...
❗️Losses, losing streaks and negative days/weeks/months are inevitable. If you want to become a full-time trader, you must be prepared for the fact that trading won't give you a stable income.
Your equity curve will be in constant fluctuation.
Your goal in this game is simply to lose less than you make.
You must become disciplined enough to keep following the rules of your trading strategy no matter what.
You must learn to be consistent in your actions.
You should learn to perceive losing trades not as a failure but simply as the moment when the market takes its share.
Feeding you, giving you the opportunity to make money out of thin air,
the market definitely has a right to claim its dividends from you.
⭐️Change your mindset, learn to lose and the magic thing will happen.
Let me know, traders, what do you want to learn in the next educational post?
a simple strategy for entrys for non traders - scalping the market always with a stop loss ... Start small always ..... risk only 2% of your portfolio ....
and for long term investing ... dollar cost average .... simply buy good companys dont put more than 5% of your portfolio on any one asset coin etc ... enjoy!!!!
Patience is a Virtue in Trading! Learn Why:
In trading, timing is everything. Winning traders are patient. They know how to control their impulses so as to act decisively at the opportune moment. Rather than acting on a whim, they carefully devise a detailed trading plan, in which precise entry and exit strategies are specified, and strictly follow it. Discipline is the key to successful trading. Although discipline can be learned, some people are more disciplined and self-controlled than others. It is useful to determine where you stand on this trait, and if you’re impulsive, developing psychological strategies to compensate for it will allow you to trade profitably.
Research studies have demonstrated that some people have difficulty delaying gratification. In the jargon of behavioural economics, they “discount delayed rewards.” That is, they would rather take a small profit now, instead of waiting for a larger profit later. Depending on your style of trading, discounting a delayed reward can be a problem.
For a long-term investor, for example, it is necessary to buy-and-hold long enough for one’s long term strategy to play out. There may be minor fluctuations during the waiting period, but seasoned investors have learned to wait it out. Most novice investors, in contrast, impulsively sell as the masses panic and buy the stock back at a top, which usually results in a losing trade.
If you are a long-term investor, it is necessary to be able to control your impulse to make a profit and allow the price to rise over time. Even shorter-term traders, such as a swing trader, must fight the urge to sell early. Although trades are held for much shorter windows, a swing trader must know how to wait patiently for the optimal time to sell. Selling a winner too early is not going to allow one’s account balance to increase exponentially at an ideal rate.
The scalper is at the opposite end of the spectrum. Most scalpers feel an overpowering need to take a quick profit as soon as they can get it. To some extent, it may be wise for a person who has trouble patiently waiting for the price of an investment instrument to increase to become a scalper.
The conventional wisdom these days, however, is that decimalization has made scalping less viable. It is useful to take other steps to work around one’s inclination to sell prematurely. For example, one can use the automatic settings on one’s trading platform to specify an exit strategy. It has often been said that looking at one’s screen during the trading day is like sitting in front of a slot machine and trying to resist gambling.
It’s hard. Just as the one-armed bandit tempts recreational gamblers, charts and indicators on a computer screen tempt seasoned and novice traders alike to make hasty trading decisions. It may be useful to refrain from constantly looking at how a particular stock or commodity is doing while you’re waiting for your trading plan to play out. If you have to walk away, while having the automatic settings on to manage risk, then, by all means, turn off your screens or walk away.
It is also useful to objectify the trade. The more you can learn to view the trade objectively, as if you just don’t care what happens, the more you’ll be able to resist the temptation to close out a trade prematurely. A cold, rational approach to trading, along with a detailed trading plan, is the best defence against impulsive trading decisions.
Patience is a virtue when attempting to trade profitably. It is useful to remember that humans have a strong, natural tendency to avoid risk and loss at all costs. This tendency often protects us from harm, but there are times when it can compel us to act impulsively. We are naturally inclined to avoid losses at all costs, even if it means selling a potentially winning trade before it reaches fruition. Unless one can let winners increase in price sufficiently, profits won’t balance out losses. The ability to control one’s impulses and wait for larger, delayed rewards is vital for long-term survival. It’s worth developing this ability.
Hey traders, let me know what subject do you want to dive in in the next post?
Forex market players: Who trades Currencies and Why?
The foreign exchange market is used by banks, investment companies, companies and even individuals who want to either cover themselves against the risk of foreign exchange fluctuations or to speculate in hopes of making a profit. 95% of all forex transactions are purely speculative in nature. Only 5% of all forex transactions result from international companies who need to convert their money back to the company's main operating currency.
Commercial banks are the main participants in the forex market, but their "market share" is slowly shrinking. Currently, 43% of all transactions pass through the interbank market, as opposed to 63% in 1998 and 53% in 2004. In terms of forex trading activity, the main role of banks is to serve as middlemen for the other market participants. Their objective is to make profits through "market making", which means that they offer their clients a "buy" price and a "sell" price.
Institutional investors are the second biggest players. They include investment and insurance companies, pension funds and hedge funds. They participate in forex trading in order to cover their stock, bond and currency portfolios and they represent 30% of all foreign exchange transactions.
Central banks intervene to manage their stock of currency and state money. Their transactions represent 5% to 10% of all forex trading volume. The central banks can also intervene in order to defend their respective currencies and to adjust economic or financial inbalances.
Brokers allow private individuals to access the forex market by transmitting their clients' orders to commercial banks or to trading platforms. They get paid from the spread or by charging a commission on each transaction.
Multinational companies participate in forex trading in order to convert their money during import or export activities. Their transactions represent approximately 5% of all global forex transactions. Some companies even have their own trading floors, with traders speculating in order to make profits and to reduce the risks related to exchange rate fluctuations.
Private investors/individuals have recently been trading the forex market as well, thanks to the internet, which allows them to have real-time access to currency exchange rates. Today, their transaction volume adds up to over 5% of all forex transactions.
Please, like this post and subscribe to our tradingview page!👍
Understanding Anchoring Bias in Trading
Anchoring is a heuristic in behavioral finance that describes the subconscious use of irrelevant information, such as the purchase price of a security, as a fixed reference point (or anchor) for making subsequent decisions about that security. Thus, people are more likely to estimate the value of the same item higher if the suggested sticker price is $100 than if it is $50.
Anchoring is a cognitive bias in which the use of an arbitrary benchmark such as a purchase price or sticker price carries a disproportionately high weight in one's decision-making process. The concept is part of the field of behavioral finance, which studies how emotions and other extraneous factors influence economic choices.
An anchoring bias can cause a financial market participant, such as a financial analyst or investor, to make an incorrect financial decision, such as buying an overvalued investment or selling an undervalued investment. Anchoring bias can be present anywhere in the financial decision-making process, from key forecast inputs, such as sales volumes and commodity prices, to final output like cash flow and security prices.
Historical values, such as acquisition prices or high-water marks, are common anchors. This holds for values necessary to accomplish a certain objective, such as achieving a target return or generating a particular amount of net proceeds. These values are unrelated to market pricing and cause market participants to reject rational decisions.
Beware of your mental fallacies. They are your main enemy in trading.
Thanks for reading bro, you are the best☺️
Like, comment and subscribe to boost your trading!
Dear followers, let me know, what topic interests you for new educational posts?
8 Trading Tips to Help You Increase Your Trading Profits
Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal.
Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability.
Here are some tips:
1. Avoid Overtrading
Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity.
2. Avoid Under-trading
Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on?
3. Take Control of Your Losses
As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits.
4. Simplify Your Approach
There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming.
5. Trade Robotically
As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading.
6. Learn Your Strengths and Weaknesses
Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement.
7. Double Down on What’s Working
Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards.
8. Don’t be Afraid to Go Back to Square One
If you find yourself in a rut, don’t hesitate to go back to basics.
In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received?
What do you want to learn in the next post?
